Blackstone Selling Senior Housing at Steep Losses
Real estate giant Blackstone has been divesting most of its senior housing properties since 2022, facing significant financial setbacks due to pandemic challenges and rising interest rates. The company started unloading its portfolio of approximately 9,000 senior housing units through multiple individual transactions, as first reported by The Wall Street Journal.
Extent of Sales and Financial Impact
- About 70 of the 90 senior housing properties have been sold.
- Blackstone is negotiating sales for the remaining properties.
- The firm has incurred losses nearing $600 million on these sales.
Background on Acquisitions
Blackstone’s large-scale entry into the senior housing market began in 2016 by acquiring a 64-property portfolio from HCP for $1.1 billion. In 2017, it purchased an additional portfolio from Welltower for $747 million. Between 2022 and 2025, Blackstone sold 39 properties initially bought for $755 million at a roughly 29% reduction, around $536 million, according to the WSJ.
Reasons Behind the Decline
Many of these senior housing assets were middle-tier, value-add properties that Blackstone intended to improve and profit from upon sale. However, the pandemic significantly lowered demand for senior housing. Additionally, macroeconomic pressures such as increased interest rates and labor expenses heightened operational costs, negatively impacting profitability.
“These properties sit in a $33.”
Author’s Summary
Blackstone’s strategic exit from the senior housing sector reveals sharp pandemic-driven disruptions and economic pressures that caused steep losses on its once-promising property investments.